Home Media Magazine - January 11, 2009 - (Page 1) JANUARY 12–18, 2009 Lawsuit Alleges ‘Conspiracy’ Between Wal-Mart and Netflix By Chris Tribbey LEGAL A lawsuit against Wal-Mart and Netflix alleges the 2005 agreement in which Wal-Mart turned over its online DVD rental business to Netflix was the result of a “conspiracy” that aimed to build a monopoly for online DVD rentals. The suit alleges the companies’ agreement had “the purpose and effect of monopolizing and unreasonably restraining trade in at least the online DVD rental market.” “[The] conspiracy enabled Netflix to charge its customers higher subscription prices for the rental of DVDs than it otherwise would have,” the suit reads. w w w.HomeMediaMagazine.com Six Netflix subscribers living across the country filed the suit Jan. 2 in U.S. District Court in Northern California. The suit, which does not specify the amount of damages they are seeking, calls for class-action status and a jury trial. “We have received and are reviewing the suit and will respond to the court at the appropriate time,” a Wal-Mart spokeswoman said. Netflix declined to comment on the suit. The suit points to a January 2005 dinner between Netflix CEO Reed Hastings and John Fleming, then-CEO of Walmart.com, where they allegedly discussed both the online and See WAL-MART, Page 24 By Erik Gruenwedel AS VEGAS — The next phase of packaged media (Blu-ray Disc) and bridging the digital divide between the Web and TV headlined much of the 2009 International Consumer Electronic Show (CES), despite INSIDE the divergent paths I For more CES each proposes for the coverage please future of home ensee pages 8, 9 tertainment. Eight CE manufacturers at last week’s CES showcased 18 Blu-ray See CES, Page 24 Blu-ray, Wireless LG Streams Netflix Themes at CES Fare Without a Box L L >> ELECTRO N IC DELIVERY The DEG named Best Buy National Retailer of the Year during its CES reception Jan. 8. (L-R): DEG board of directors Craig Kornblau, president, Universal; Bob Chapek, president, Walt Disney; Bob Weissburg, president, sales & marketing for North America, D&M Holdings; accepting for Best Buy, Julie Owen, SVP, entertainment; Mike Dunn, president, Fox; and Ron Sanders, president, Warner. DEG: Home Video Resilient By Thomas K. Arnold he home entertainment market proved more stable in 2008 than many had feared. Final figures show consumers spent an estimated $22.4 billion buying and renting discs, down 5.5% from 2007’s $23.7 billion. Figures compiled by DEG: The Digital En- T tertainment Group on behalf of the studios show consumers spent $14.5 billion on buying DVDs in 2008, down from $16 billion in 2007. Blu-ray Disc spending, however, added another $400 million to the pie. The rental business was flat at $7.5 billion, See DEG, Page 24 By Erik Gruenwedel G Electronics expanded its distribution deal with Netflix with the announcement of a new line of Internet-enabled plasma and LCD TVs capable for the first time of receiving streams without requiring an external device or set-top box. LG and Los Gatos, Calif.-based Netflix last year ushered in the online DVD rental pioneer’s aim to offer its instant-streaming service to third-party set-top boxes, beginning with LG’s BD300 Network Blu-ray player. Subsequent streaming deals have included Microsoft’s Xbox 360, TiVo and select Samsung BD players, in addition to a proprietary box manufactured by Roku. “Embedding the Netflix streaming software in the television is a natural progression of our partnership with Netflix,” said Teddy Hwang, president of LG Electronics USA. The Korean manufacturer late last year forged additional content deals for the BD300 with CinemaNow and YouTube. Reed Hastings, co-founder and CEO of Netflix, said the new HDTVs INSIDE >> Blockbuster on Demand Rentals through Web-ready TVs. >> DRM-free iTunes? Apple losing DRM. PAGE 9 See LG, Page 22 ROKU INKS AMAZON VOD DEAL By Erik Gruenwedel R oku, manufacturer of Netflix’s proprietary set-top box, Jan. 5 said it signed a deal with Amazon’s video-ondemand (VOD) service. Beginning this year, Saratoga, Calif.-based Roku will offer owners of the $99 box (heretofore primarily Netflix subscribers) access to more than 40,000 on-demand movies and TV shows for rent or purchase from $3.99 and $1.99, respectively. See ROKU, Page 20 Home A R C H Media RESE MAR KET S HAR E 16% as of 1/4/09 I Blu-ray I DVD >> HIGH-DEF INSIDE BD Live Gets Task Force Ascent Media Group will provide studios with back-end software technology. Consumers spent $132.83 million on DVDs for the week Blu-ray vs. DVD Sales* Consumers spent $24.33 million on Blu-ray Discs for the week Pioneer Wins Product Award Sound & Vision dubs Pioneer’s Elite Kuro PRO111FD plasma TV video product of the year. Down 56.09% from the previous week. * Top 20 unit volume 84% Down 39.28% from the previous week. Source: Home Media Research PAGE 8 NEWS Genius Products’ stock is delisted, and it begins restructuring, as GNPR Investments LLC buys 60% of the company from The Weinstein Co. RESEARCH Paramount set its sights on the top of the charts with Eagle Eye, which topped the home video sales and rental charts. Page 4 Page 16 http://www.Walmart.com http://www.HomeMediaMagazine.com
Table of Contents Feed for the Digital Edition of Home Media Magazine - January 11, 2009 Contents News Cine Mercado Reviews Research Top 20 DVD Sellers Top 20 Rentals and Top 10 Charts Just Announced Home Media Magazine - January 11, 2009 Home Media Magazine - January 11, 2009 - (Page 1) Home Media Magazine - January 11, 2009 - (Page 2) Home Media Magazine - January 11, 2009 - Contents (Page 3) Home Media Magazine - January 11, 2009 - News (Page 4) Home Media Magazine - January 11, 2009 - News (Page 5) Home Media Magazine - January 11, 2009 - News (Page 6) Home Media Magazine - January 11, 2009 - News (Page 7) Home Media Magazine - January 11, 2009 - News (Page 8) Home Media Magazine - January 11, 2009 - News (Page 9) Home Media Magazine - January 11, 2009 - Cine Mercado (Page 10) Home Media Magazine - January 11, 2009 - Cine Mercado (Page 11) Home Media Magazine - January 11, 2009 - Reviews (Page 12) Home Media Magazine - January 11, 2009 - Reviews (Page 13) Home Media Magazine - January 11, 2009 - Reviews (Page 14) Home Media Magazine - January 11, 2009 - Reviews (Page 15) Home Media Magazine - January 11, 2009 - Top 20 DVD Sellers (Page 16) Home Media Magazine - January 11, 2009 - Top 20 Rentals and Top 10 Charts (Page 17) Home Media Magazine - January 11, 2009 - Top 20 Rentals and Top 10 Charts (Page 18) Home Media Magazine - January 11, 2009 - Top 20 Rentals and Top 10 Charts (Page 19) Home Media Magazine - January 11, 2009 - Just Announced (Page 20) Home Media Magazine - January 11, 2009 - Just Announced (Page 21) Home Media Magazine - January 11, 2009 - Just Announced (Page 22) Home Media Magazine - January 11, 2009 - Just Announced (Page 23) Home Media Magazine - January 11, 2009 - Just Announced (Page 24) Home Media Magazine - January 11, 2009 - Just Announced (Page 25) Home Media Magazine - January 11, 2009 - Just Announced (Page 26)
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